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Loans (Tables)

3 Months Ended

Mar. 31, 2019

Loan balances as of March 31, 2019 and December 31, 2018:

	(In Thousands)
Loans:	March 31, 2019			December 31, 2018
Consumer Real Estate	$	161,180		$	80,766
Agricultural Real Estate		192,903			68,609
Agricultural		114,920			108,495
Commercial Real Estate		441,200			419,784
Commercial and Industrial		137,936			121,793
Consumer		47,573			41,953
Industrial Development Bonds		7,384			5,889
		1,103,096			847,289
Less: Net deferred loan fees and costs		(1,133	)		(915	)
		1,101,963			846,374
Less: Allowance for loan losses		(6,636	)		(6,775	)
Less: Purchase Accounting Adjustments		(3,498	)		-
Loans - Net	$	1,091,829		$	839,599

Contractual Maturity Schedule by Major Category of Loans

The following is a contractual maturity schedule by major category of loans as of March 31, 2019:

	(In Thousands)
			After One
	Within		Year Within		After
	One Year		Five Years		Five Years
Consumer Real Estate	$	6,370	$	17,260	$	137,550
Agricultural Real Estate		680		6,082		186,141
Agricultural		71,544		31,632		11,744
Commercial Real Estate		18,402		169,066		253,732
Commercial and Industrial		74,195		53,787		9,954
Consumer		6,025		30,870		10,678
Industrial Development Bonds		424		291		6,669

Distribution of Fixed Rate Loans and Variable Rate Loans by Major Loan Category

The distribution of fixed rate loans and variable rate loans by major loan category is as follows as of March 31, 2019:

	(In Thousands)
	Fixed		Variable
	Rate		Rate
Consumer Real Estate	$	66,857	$	94,323
Agricultural Real Estate		86,756		106,147
Agricultural		41,061		73,859
Commercial Real Estate		272,827		168,373
Commercial and Industrial		54,861		83,075
Consumer		42,487		5,086
Industrial Development Bonds		7,282		102

Contractual Aging of the Recorded Investment in Past Due Loans by Portfolio Classification of Loans

The following table represents the contractual aging of the recorded investment (in thousands) in past due loans by portfolio classification of loans as of March 31, 2019 and December 31, 2018, net of deferred loan fees and costs:

March 31, 2019	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables		Recorded Investment > 90 Days and Accruing

Consumer Real Estate	$	844	$	142	$	700	$	1,686	$	158,803	$	160,489	$	-
Agricultural Real Estate		-		-		-		-		192,887		192,887		-
Agricultural		74		-		-		74		114,969		115,043		-
Commercial Real Estate		-		-		-		-		440,488		440,488		-
Commercial and Industrial		-		-		-		-		145,360		145,360		-
Consumer		77		4		35		116		47,580		47,696		-

Total	$	995	$	146	$	735	$	1,876	$	1,100,087	$	1,101,963	$	-

December 31, 2018	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables		Recorded Investment > 90 Days and Accruing

Consumer Real Estate	$	342	$	24	$	254	$	620	$	79,612	$	80,232	$	-
Agricultural Real Estate		-		-		-		-		68,588		68,588		-
Agricultural		-		-		-		-		108,616		108,616		-
Commercial Real Estate		-		-		-		-		419,131		419,131		-
Commercial and Industrial		-		-		-		-		127,752		127,752		-
Consumer		85		24		8		117		41,938		42,055		-

Total	$	427	$	48	$	262	$	737	$	845,637	$	846,374	$	-

Recorded Investment in Nonaccrual Loans by Portfolio Class of Loans

The following table presents the recorded investment in nonaccrual loans by class of loans as of March 31, 2019 and December 31, 2018:

	(In Thousands)
	March 31, 2019		December 31, 2018

Consumer Real Estate	$	1,071	$	462
Agricultural Real Estate		-		-
Agricultural		-		-
Commercial Real Estate		-		-
Commercial & Industrial		70		72
Consumer		47		8
Total	$	1,188	$	542

Risk Category of Loans by Portfolio Class

The following table represents the risk category of loans by portfolio class, net of deferred fees and costs, based on the most recent analysis performed as of March 31, 2019 and December 31, 2018:

	(In Thousands)
									Industrial
	Agricultural				Commercial		Commercial		Development
	Real Estate		Agricultural		Real Estate		and Industrial		Bonds
March 31, 2019
1-2	$	42,560	$	7,515	$	9,985	$	4,641	$	-
3		60,378		44,179		82,470		27,547		2,505
4		74,077		60,588		340,200		93,937		4,879
5		15,740		2,761		5,262		6,217		-
6		132		-		2,571		4,753		-
7		-		-		-		881		-
8		-		-		-		-		-
Total	$	192,887	$	115,043	$	440,488	$	137,976	$	7,384

									Industrial
	Agricultural				Commercial		Commercial		Development
	Real Estate		Agricultural		Real Estate		and Industrial		Bonds
December 31, 2018
1-2	$	4,442	$	5,753	$	4,698	$	3,199	$	-
3		14,118		38,852		64,341		16,284		3,135
4		49,596		63,380		346,072		100,644		2,754
5		422		631		2,171		308		-
6		10		-		1,849		542		-
7		-		-		-		886		-
8		-		-		-		-		-
Total	$	68,588	$	108,616	$	419,131	$	121,863	$	5,889

Recorded Investment for Consumer Loans, Credit Quality based on Status of Loan and Payment Activity

The following tables present the recorded investment in those classes based on payment activity and assigned risk grading as of March 31, 2019 and December 31, 2018.

	(In Thousands)
	Consumer		Consumer
	Real Estate		Real Estate
	March 31, 2019		December 31, 2018
Grade
Pass	$	158,309	$	79,121
Special Mention (5)		135		232
Substandard (6)		2,045		879
Doubtful (7)		-		-
Total	$	160,489	$	80,232

	(In Thousands)
	Consumer - Credit				Consumer - Other
	March 31, 2019		December 31, 2018		March 31, 2019		December 31, 2018
Performing	$	3,861	$	3,909	$	43,366	$	38,073
Nonperforming		14		19		455		54
Total	$	3,875	$	3,928	$	43,821	$	38,127

Schedule of Impaired Loans

Information about impaired loans as of March 31, 2019, December 31, 2018 and March 31, 2018 are as follows:

			(In Thousands)
	March 31, 2019		December 31, 2018		March 31, 2018

Impaired loans without a valuation allowance	$	1,915	$	1,808	$	999
Impaired loans with a valuation allowance		254		246		607
Total impaired loans	$	2,169	$	2,054	$	1,606
Valuation allowance related to impaired loans	$	59	$	31	$	104
Total non-accrual loans	$	1,188	$	542	$	900
Total loans past-due ninety days or more and still accruing	$	-	$	-	$	-
Quarter ended average investment in impaired loans	$	2,135	$	2,533	$	1,688
Year to date average investment in impaired loans	$	2,135	$	1,958	$	1,688

Loans Individually Evaluated for Impairment by Portfolio Class of Loans

The following tables present loans individually evaluated for impairment by class of loans for three months ended March 31, 2019 and March 31, 2018.

	(In Thousands)
											QTD
							QTD		QTD		Interest
Three Months Ended March 31, 2019			Unpaid				Average		Interest		Income
	Recorded		Principal		Related		Recorded		Income		Recognized
	Investment		Balance		Allowance		Investment		Recognized		Cash Basis
With no related allowance recorded:
Consumer Real Estate	$	648	$	648	$	-	$	603	$	7	$	1
Agricultural Real Estate		-		-		-		-		-		-
Agricultural		-		-		-		-		-		-
Commercial Real Estate		192		192		-		193		3		-
Commercial and Industrial		1,075		1,075		-		1,085		15		-
Consumer		-		-		-		-		-		-
With a specific allowance recorded:
Consumer Real Estate		254		254		59		254		-		-
Agricultural Real Estate		-		-		-		-		-		-
Agricultural		-		-		-		-		-		-
Commercial Real Estate		-		-		-		-		-		-
Commercial and Industrial		-		-		-		-		-		-
Consumer		-		-		-		-		-		-
Totals:
Consumer Real Estate	$	902	$	902	$	59	$	857	$	7	$	1
Agricultural Real Estate	$	-	$	-	$	-	$	-	$	-	$	-
Agricultural	$	-	$	-	$	-	$	-	$	-	$	-
Commercial Real Estate	$	192	$	192	$	-	$	193	$	3	$	-
Commercial and Industrial	$	1,075	$	1,075	$	-	$	1,085	$	15	$	-
Consumer	$	-	$	-	$	-	$	-	$	-	$	-

	(In Thousands)
											QTD
							QTD		QTD		Interest
Three Months Ended March 31, 2018			Unpaid				Average		Interest		Income
	Recorded		Principal		Related		Recorded		Income		Recognized
	Investment		Balance		Allowance		Investment		Recognized		Cash Basis
With no related allowance recorded:
Consumer Real Estate	$	489	$	489	$	-	$	492	$	8	$	6
Agricultural Real Estate		-		-		-		67		-		-
Agricultural		-		-		-		-		-		-
Commercial Real Estate		200		200		-		201		3		-
Commercial and Industrial		310		310		-		209		4		-
Consumer		-		-		-		-		-		-
With a specific allowance recorded:
Consumer Real Estate		80		80		20		80		-		-
Agricultural Real Estate		-		-		-		-		-		-
Agricultural		-		-		-		-		-		-
Commercial Real Estate		418		418		42		420		4		-
Commercial and Industrial		109		109		42		219		-		-
Consumer		-		-		-		-		-		-
Totals:
Consumer Real Estate	$	569	$	569	$	20	$	572	$	8	$	6
Agricultural Real Estate	$	-	$	-	$	-	$	67	$	-	$	-
Agricultural	$	-	$	-	$	-	$	-	$	-	$	-
Commercial Real Estate	$	618	$	618	$	42	$	621	$	7	$	-
Commercial and Industrial	$	419	$	419	$	42	$	428	$	4	$	-
Consumer	$	-	$	-	$	-	$	-	$	-	$	-

Summary of Activities in Allowance for Credit Losses

The following tables summarize the activities in the allowance for credit losses.

	(In Thousands)
	Three Months Ended			Twelve Months Ended
	March 31, 2019			December 31, 2018
Allowance for Loan & Lease Losses
Balance at beginning of year	$	6,775		$	6,868
Provision for loan loss		30			324
Loans charged off		(207	)		(580	)
Recoveries		38			163
Allowance for Loan & Lease Losses	$	6,636		$	6,775
Allowance for Unfunded Loan Commitments & Letters of Credit	$	346		$	274
Total Allowance for Credit Losses	$	6,982		$	7,049

Analysis of Allowance for Credit Losses

Additional analysis, presented in thousands, related to the allowance for credit losses for three months ended March 31, 2019 and March 31, 2018 in addition to the ending balances as of December 31, 2018 is as follows:

	Consumer Real Estate		Agricultural Real Estate		Agricultural			Commercial Real Estate			Commercial and Industrial		Consumer			Unfunded Loan Commitment & Letters of Credit		Unallocated			Total
Three Months Ended March 31, 2019
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance	$	247	$	250	$	768		$	3,217		$	1,305	$	484		$	274	$	504		$	7,049
Charge Offs		-		-		-			-			-		(207	)		-		-			(207	)
Recoveries		-		-		1			2			3		32			-		-			38
Provision (Credit)		21		20		(63	)		(16	)		182		187			-		(301	)		30
Other Non-interest expense related to unfunded		-		-		-			-			-					72		-			72
Ending Balance	$	268	$	270	$	706		$	3,203		$	1,490	$	496		$	346	$	203		$	6,982
Ending balance: individually evaluated for impairment	$	59	$	-	$	-		$	-		$	-	$	-		$	-	$	-		$	59
Ending balance: collectively evaluated for impairment	$	209	$	270	$	706		$	3,203		$	1,490	$	496		$	346	$	203		$	6,923
Ending balance: loans acquired with deteriorated credit quality	$	-	$	-	$	-		$	-		$	-	$	-		$	-	$	-		$	-
FINANCING RECEIVABLES:
Ending balance	$	160,489	$	192,887	$	115,043		$	440,488		$	145,360	$	47,696		$	-	$	-		$	1,101,963
Ending balance: individually evaluated for impairment	$	902	$	-	$	-		$	192		$	1,075	$	-		$	-	$	-		$	2,169
Ending balance: collectively evaluated for impairment	$	159,241	$	192,887	$	115,043		$	440,296		$	142,242	$	47,696		$	-	$	-		$	1,097,405
Ending balance: loans acquired with deteriorated credit quality	$	346	$	-	$	-		$	-		$	2,043	$	-		$	-	$	-		$	2,389

	(In Thousands)
December 31, 2018	Consumer Real Estate			Agricultural Real Estate		Agricultural		Commercial Real Estate		Commercial and Industrial		Consumer		Unfunded Loan Commitment & Letters of Credit		Unallocated		Total
ALLOWANCE FOR CREDIT LOSSES:
Ending Balance	$	247		$	250	$	768	$	3,217	$	1,305	$	484	$	274	$	504	$	7,049
Ending balance: individually evaluated for impairment	$	26		$	-	$	-	$	-	$	5	$	-	$	-	$	-	$	31
Ending balance: collectively evaluated for impairment	$	221		$	250	$	768	$	3,217	$	1,300	$	484	$	274	$	504	$	7,018
Ending balance: loans acquired with deteriorated credit quality	$	-		$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
FINANCING RECEIVABLES:
Ending balance	$	80,232		$	68,588	$	108,616	$	419,131	$	127,752	$	42,055	$	-	$	-	$	846,374
Ending balance: individually evaluated for impairment	$	757	#	$	-	$	-	$	194	$	1,103	$	-	$	-	$	-	$	2,054
Ending balance: collectively evaluated for impairment	$	79,359		$	68,588	$	108,616	$	418,937	$	126,649	$	42,055	$	-	$	-	$	844,204
Ending balance: loans acquired with deteriorated credit quality	$	116		$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	116

	Consumer Real Estate			Agricultural Real Estate		Agricultural		Commercial Real Estate			Commercial and Industrial			Consumer			Unfunded Loan Commitment & Letters of Credit		Unallocated			Total
Three Months Ended March 31, 2018
ALLOWANCE FOR CREDIT LOSSES:
Beginning balance	$	343		$	244	$	667	$	3,149		$	1,546		$	441		$	227	$	478		$	7,095
Charge Offs		(34	)		-		-		(14	)		-			(97	)		-		-			(145	)
Recoveries		-			-		3		2			2			30			-		-			37
Provision (Credit)		(55	)		19		36		537			(105	)		57			-		(449	)		40
Other Non-interest expense related to unfunded		-			-		-		-			-			-			38		-			38
Ending Balance	$	254		$	263	$	706	$	3,674		$	1,443		$	431		$	265	$	29		$	7,065
Ending balance: individually evaluated for impairment	$	20		$	-	$	-	$	42		$	42		$	-		$	-	$	-		$	104
Ending balance: collectively evaluated for impairment	$	234		$	263	$	706	$	3,632		$	1,401		$	431		$	265	$	29		$	6,961
Ending balance: loans acquired with deteriorated credit quality	$	-		$	-	$	-	$	-		$	-		$	-		$	-	$	-		$	-
FINANCING RECEIVABLES:
Ending balance	$	84,052		$	67,569	$	99,954	$	414,666		$	129,865		$	38,631		$	-	$	-		$	834,737
Ending balance: individually evaluated for impairment	$	569		$	-	$	-	$	618		$	419		$	-		$	-	$	-		$	1,606
Ending balance: collectively evaluated for impairment	$	83,362		$	67,569	$	99,954	$	414,048		$	129,446		$	38,631		$	-	$	-		$	833,010
Ending balance: loans acquired with deteriorated credit quality	$	121		$	-	$	-	$	-		$	-		$	-		$	-	$	-		$	121